Cadbury Nigeria records N296m loss

Cadbury Nigeria records N296m loss

Cadbury Nigeria Plc on Tuesday released its audited report for the 2016 business year showing a net loss of N296.4 million.

The audited report and accounts of Cadbury Nigeria Plc for the year ended December 31, 2016 released at the Nigerian Stock Exchange (NSE) indicated that total sales rose by eight per cent from N27.83 billion in 2015 to N29.98 billion in 2016. However, cost of sales however rose by 22 per cent from N18.89 billion to N23.12 billion. This compressed gross profit by 23 per cent from N8.93 billion to N6.86 billion.

Operating profit dropped from N1.42 billion in 2015 to a loss of N732.85 million in 2016. As against a pre-tax profit of N1.58 billion in 2015, the company posted pre-tax loss of N562.87 million. After taxes, net loss stood at N296.40 million in 2016 as against a net profit of N1.15 billion in 2015.

Earnings per share thus reversed from 61 kobo in 2015 to a loss per share of 16 kobo in 2016. Net assets per share also declined by 10 per cent from N6.54 in 2015 to N5.89 in 2016, with shareholders’ funds declining by the same margin from N12.3 billion in 2015 to N11.1 billion in 2016.

Barely 25 months on the job, Cadbury Nigeria Plc’s managing director, Mr. Roy Naaman had resigned by the end of January 2017 as the food and beverages giant continued to struggle with low sales and declining profitability.

Mondelēz International, a global snacks powerhouse that holds 74.97 per cent equity stake in Cadbury Nigeria then drafted the director of the innovation kids wholesome segment of its global biscuits business based in East Hanover, United States of America,Mr. Muhammad Amir Shamsi, to take over the leadership of the Nigerian subsidiary.

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Naaman resignation took effect on January 31, 2017 while Shamsi resumed on February 1, 2017, according to regulatory filing announcing the leadership change.

Mondelēz International had hoped that Naaman, who joined the group on January 1, 2015, would help to stimulate performance and drive its businesses in the West African region.

“In Roy, we are very pleased to gain a highly experienced leader, with a strong track record in driving sustained and profitable growth. In his previous role, Roy was instrumental in spurring business expansion in southern Africa and the Caucasus. He is a most valuable addition to our company,” Romeo Lacerda, President, Markets, Eastern Europe, Middle East and Africa, Mondelēz International, had said in a company statement.

Naaman joined Mondelēz International from the Diplomat Group, a global distribution company representing leading brands. With a Bachelor of Arts in business, majoring in finance, Naaman has held a number of positions in the Diplomat Group in several countries, including Georgia, and most recently as a General Manager of its largest market.

Cadbury Nigeria slipped into loss in the third quarter 2016, raising concerns over the worsening impact of sluggish sales and rising costs of operations. Turnover stood at N21.33 billion by third quarter 2016 as against N21.07 billion in third quarter 2015. The company however recorded a loss of N842.16 million in third quarter 2016 as against a modest pre-tax profit of N40.79 million in comparable quarter of 2015.

Sources close to the company said Mondelēz International is falling back on Mr Shamsi, who has been with the group for nearly a decade, to help drive critical performance measures that could see Cadbury Nigeria regaining its declining market share.

Shamsi is an experienced hand in West Africa. He was the group’s marketing director for West Africa between October 2013 and March 2016. He had earlier served as head of new categories and Gum and Candy in West Africa between September 2012 and September 2013. He joined Mondelēz International in June 2009.



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